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On behalf of its Real-time Market Data Subject Group (RTMDSG), the Financial Information Services Division of the Software & Information industry Association announces the publication of Version 2.1 of its White Paper covering the Price Transparency requirements of the MiFID.
MiFID is the European Union (EU) Markets in Financial Instruments Directive. It is the most significant EU legislation for investment intermediaries and financial markets since 1995 and it extends the range of regulatory requirements for affected firms. MiFID will significantly affect the financial information industry by introducing new requirements related to real-time market data transparency. Key portions of the Directive affecting real-time market data transparency are scheduled for implementation in November 2007.
This White Paper describes how the European financial markets could meet the price transparency requirements of MiFID and offers recommended best practices for the publishing of real-time pricing information. The recommendations are based on the current understanding of the requirements of the MiFID. Version 1.0 of the White Paper was limited to post-trade transparency and was published in December 2005.The White Paper on Price Transparency for MiFID can be downloaded from www.fisd.net.
The White Paper helps affected organisations plan for MiFID and make some of the key decisions they will need to take. It serves as a resource for a variety of organisations seeking to understand MiFID’s implications for their businesses:- Financial institutions that have new data publishing obligations under MiFID, including “Systematic Internalisers” – financial institutions that deal on their own account by executing client orders outside an organized external market
- Data publishers, including exchanges, that may seek to offer data re-publishing services to financial institutions (referred to in the White Paper as "Data Aggregators”),
- Market data vendors,
- Consumers of real-time market information – both professionals and private investors
- Regulators who will need to oversee the implementation of MiFID and enforce the regulations.
- How can my organisation report/publish data?
- What are the implications for my organisation if it is a re-publisher of real-time data (referred to in the White Paper as a "Data Aggregator”)?
- What data will my organisation require?
- What are the data publishing implications for my organisation if it is a Systematic Internaliser?
- How and where will consumers get this data?
The White Paper does not provide advice regarding these decisions nor does it necessarily provide all the information necessary for an organisation to make these decisions. The White Paper is a consensus recommendation of the MiFID RTMDSG but does not necessarily reflect the view of any organisation that is participating in this group.
The MiFID-JWG is a collaboration founded by FIX Protocol Ltd (FPL), ISITC Europe, RDUG and FISD/SIIA. Members of these organisations have worked together voluntarily since April 2005 to address the common MiFID-related issues identified by each of the effort’s six Subject Groups. Each Subject Group is led by one of the organizations, with participation open to members of the other affiliated organisations. MiFID-JWG participants have been successful in identifying and addressing the operational issues created by MiFID for the financial services industry across the European Union and the European Economic Area.
